Summary Box: Jobless claims fall in hopeful sign

CLAIMS IMPROVE: The number of people applying for unemployment benefits fell sharply last week to 435,000, the third drop in four weeks. The four-week average dropped to its lowest level in more than two years.

FIRINGS DOWN: The figures show that layoffs are falling and hiring is picking up. Last week the government said private companies added the most jobs in October in six months.

MORE NEEDED: Still, claims need to fall consistently below 425,000 to signal that companies are ramping up hiring at a pace fast enough to put a dent in the 9.6 percent unemployment rate.